The Italians have joined China’s controversial “New Silk Road” programme, a move that is likely to stoke the ire of Washington. At the weekend, Italian populists handed Donald Trump yet another reason to turn his trade guns on Europe, increasing the risk of a German recession. At a signing ceremony in Rome, Chinese President Xi … Continue reading “Germany will pay the price for Italy’s provocation of Trump”

In 2018, international investors pulled out more than €50 billion from European equities in response to weakening Eurozone economic data, uncertainty over Brexit and concerns about Italian banks. Today, investors’ positioning in Europe is as underweight as it has been since the Eurozone crisis. It is understandable that investors are wary of a potential economic … Continue reading “Panning for gold in murky waters”

As bond investors seek a better return than the poor yields on advanced country bonds, they eye up the higher income available on some company debt. There has been a sharp increase in so called levered loans. These are bonds issued by larger companies, often at a floating rate of interest related to official interest … Continue reading “Is corporate debt worth the risk?”

The Federal Reserve (Fed) has lowered its projections for US growth and inflation and reduced its expectations for interest rates. The “dot plot” published after last night’s meeting shows no rate hikes this year and only one in 2020. Tighter financial conditions At his press conference, Fed chair Jerome Powell said growth was slowing by … Continue reading “Fed turns more dovish and signals an end to rate hikes”

The difficulties in getting a good return from Western nation bonds. The great crash of 2008-9 has left interest rates in much of the advanced world at very low levels. The fitful and slow recovery this decade has meant central banks have needed to keep rates low. Japan had a similar, if even more dramatic, … Continue reading “You still struggle to get an income on safer investments”

It seems clear to us that the world investors have got used to over the last few years is very different to the one we need to get accustomed to in the years to come. We have identified a number of economic forces and disruptive forces we think will shape the investment landscape ahead of … Continue reading “Inescapable investment truths for the decade ahead”

As we move into March, global stocks have enjoyed the best start to the year in almost three decades. Does this bode well for the rest of 2019? History suggests it does. Since 1928, a good January/February has led to a positive calendar year over 80% of the time. However, history does not always rhyme … Continue reading “A good start to the year – where next?”

Looking back to the start of this year (when the UK market was 5% lower than it is now), now in early March, it serves as a keen reminder of how powerful the effect of sentiment can be on investors. And of how quickly scares can fade from the memory. What has caused the mood … Continue reading “Market mood swing”

With interest rates already near record lows, what’s left in the Fed’s arsenal to fight the next recession? Low starting interest rates means that the Federal Reserve (Fed) may need to expand its policy toolkit to fight an economic downturn. But if this proves insufficient, fiscal policy need to pick up the slack. The go-to … Continue reading “Does the US have enough firepower to fight the next recession?”

Real estate is typically a slow mover in the investment world. It tends not to be affected by the day-to-day rumblings in the equity and bond markets. Nevertheless, change is still afoot in real estate, with both short- and long-term trends affecting how we use properties and how we invest. Real estate is now at … Continue reading “Embracing change in European real estate”

If North Korea gives up its nuclear arsenal, Donald Trump has promised that the country will have an “awesome” economic future with a wealth of opportunities on offer. The US president is not alone in seeing vast potential in the reclusive Asian nation. Billionaire Jim Rogers, one of the world’s most successful investors, famously said … Continue reading “Does the Trump-Kim summit matter for investors?”

The UK ended February with the question of Brexit still unanswered. The month was dominated by political newsflow as concerns over Brexit were compounded by the resignation of eleven MPs who left the Conservative or Labour parties to form ‘The Independent Group’. A second ‘meaningful vote’ on Prime Minister Theresa May’s Brexit deal will take … Continue reading “The Brexit deadline looms”

We are in the long run up to the European Parliamentary elections. This will be followed by the appointment of a new European Commission. It means there will be an argument over the future direction of EU and euro policy, with a wide range of views from those who with En Marche in France want … Continue reading “Pressures on the EU as elections loom”

Could forestry’s importance in reducing carbon emissions and the rising cost of carbon credits change the world economy? Forestry is a key element of the carbon emissions reduction puzzle. Trees cover 31% of the world’s land surface, equal to just over 4 billion hectares1. Each hectare of forest removes about 10 tons of carbon dioxide … Continue reading “Is Brazil the new Saudi Arabia?”

Last year was not a good year for the world motor industry. Passenger car sales fell by 13% in the USA, by 9% in the UK, by 4% in China, by 3% in France and by 0.2% in Germany. In the USA higher interest rates reduced people’s willingness to take out car loans. In China … Continue reading “Car crash in the motor industry?”